If your firm acts for a small charitable trust that has become obsolete or expensive to manage, Sussex Community Foundation can provide a simple solution.
Charitable Trusts become less active for a number of reasons, for example the original purpose may have become difficult to fulfil or the number of Trustees may have reduced. Dealing with ongoing administration and legal requirements can become onerous.
One of the options available is to transfer funds to a local Community Foundation, the process for smaller Trusts is relatively straightforward.
The Charity Commission is particularly keen that the funds held by local trusts remain as endowment and continue to benefit local communities in the long term, which is why they are working closely with local Community Foundations.
For example Michael Wells of Malcolm Wilson & Cobby in Worthing has recently completed a transfer of a small charitable trust to Sussex Community Foundation.
The Francis John Wethered Scholarship was originally set up in 1993 to provide a post graduate scholarship for individuals to study Arabic at a University or College in the Middle East.
However the demand for such funding has dropped away and despite advertising the scholarship the firm was struggling to distribute any of the income.
Fund Development Manager, Janet Ormerod, had got in touch with Michael to introduce the services that Sussex Community Foundation provides and this is when the topic of obsolete trusts came up.
“We had been scratching our heads over this trust for some time. When Janet mentioned she could explore the possibility of a trust transfer to the Foundation this was music to my ears!” Michael said.
“She had the right contacts at the Commission to make some quick enquiries and the technical know-how to get agreement for the transfer. She made the process very simple for us and even drafted the resolution wording for our trustees to sign.”
The transferred assets will now be held within the Foundation’s endowment fund. As part of the transfer, the Charity Commission also agreed that the original objects be broadened so the income will now be used to provide grants to organisations with an educational theme.
If you would like to find out more about trust transfers or any other services that Sussex Community Foundation provides please contact Janet Ormerod on:
Phone: 01273 409440
For more information about Sussex Community Foundation see www.sussexgiving.org.uk